UK Transactions Plummet as SDLT Hike Hits Home

The number of resi property transactions across the UK fell by nearly half between March and April as the government’s latest stamp duty increase came into effect.

Data from HMRC shows a seasonally adjusted figure of 84,280 resi transactions for April 2016. That’s down a whopping 45.2% on the record 165,480 recorded in March and 14.5% lower than the same month last year.

A statement said the unprecedented spike was “likely to be associated” with the introduction of the higher rates on additional properties. “However”, added the report, “whilst April 2016 is lower than April 2015, it should be noted that the total for March and April 2016 is still substantially higher than the corresponding period last year.”

“Additional non-tax factors may have played a role as well, for example the Bank of England’s plans to curb buy-to-let mortgages resulting in a rush to purchase,” it continued.

The number of non-adjusted resi transactions for April 2016 was 59.2% lower than March 2016 and 18.7% down on April 2015.